A company signs a lease on January 1 , Year One, to lease a machine for eight years. Payments are $10,000 per year with the first payment made at the beginning of the year. The company has an incremental borrowing rate of 10 percent and the lease is considered as a capital lease. Assume the present value of an annuity due of $1 for eight periods at an annual interest rate of 10 percent is 5.335 . Ensure to show work for all calculations. Prepare the following journal entries for the company. - Record the signing of the lease on January 1, Year One. - Record the first payment on January 1, Year One. - Record depreciation on the equipment on December 31, Year One. - Record interest on the liability on December 31, Year One. - Record the second payment on January 1, Year Two